Correlation Between Superior Plus and Fresenius
Can any of the company-specific risk be diversified away by investing in both Superior Plus and Fresenius at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Superior Plus and Fresenius into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Superior Plus Corp and Fresenius SE Co, you can compare the effects of market volatilities on Superior Plus and Fresenius and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Superior Plus with a short position of Fresenius. Check out your portfolio center. Please also check ongoing floating volatility patterns of Superior Plus and Fresenius.
Diversification Opportunities for Superior Plus and Fresenius
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Superior and Fresenius is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Superior Plus Corp and Fresenius SE Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fresenius SE and Superior Plus is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Superior Plus Corp are associated (or correlated) with Fresenius. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fresenius SE has no effect on the direction of Superior Plus i.e., Superior Plus and Fresenius go up and down completely randomly.
Pair Corralation between Superior Plus and Fresenius
Assuming the 90 days horizon Superior Plus Corp is expected to under-perform the Fresenius. In addition to that, Superior Plus is 3.29 times more volatile than Fresenius SE Co. It trades about -0.03 of its total potential returns per unit of risk. Fresenius SE Co is currently generating about 0.15 per unit of volatility. If you would invest 3,379 in Fresenius SE Co on November 7, 2024 and sell it today you would earn a total of 313.00 from holding Fresenius SE Co or generate 9.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Superior Plus Corp vs. Fresenius SE Co
Performance |
| Timeline |
| Superior Plus Corp |
| Fresenius SE |
Superior Plus and Fresenius Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Superior Plus and Fresenius
The main advantage of trading using opposite Superior Plus and Fresenius positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Superior Plus position performs unexpectedly, Fresenius can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fresenius will offset losses from the drop in Fresenius' long position.| Superior Plus vs. Take Two Interactive Software | Superior Plus vs. CORNISH METALS INC | Superior Plus vs. PARKEN Sport Entertainment | Superior Plus vs. Yuexiu Transport Infrastructure |
| Fresenius vs. Plastic Omnium | Fresenius vs. Sumitomo Rubber Industries | Fresenius vs. LOANDEPOT INC A | Fresenius vs. GRENKELEASING Dusseldorf |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |